|
PureBytes Links
Trading Reference Links
|
"IMPORTANT"
To Visavis and all client traders,
There are rules which apply to you and rules that apply to your firm's
trading staff. The four tick rule sounds not even like a rule but a
mechanical function to help trading staff from making rediculous errors.
I trade stocks in Montreal on the ME. Are system will not allow one
market order to up/downtick a stock more than 10 ticks. But that is NOT
the client's problem. If I need to knock a stock down 20 ticks, I enter
a market order which trades whatever is bid down 10 ticks and then the
system assigns a limit price. I then enter a CFO(change former order) to
the lower limit(another ten ticks). If I have no limit it is my job see
that order though execution. If I just entered the order and didn't know
about the downtick rule, and assumed a fill or was busy with other
orders and didn't see the message that the exchange's system assigned a
limit to the market order, I will OWE the client a fill at some price
where the stock was bid at shortly after the limit was assigned. I could
try to give bullshit excuses to the client but if he/she was to call the
exchange and get a ruling from the floor committee I would be hung.
In other words, if you don't understand your broker's answer(or don't
like it), get in touch with the branch manager and clearly explain the
story. If you don't like the manager's answer, call the
exchange. Things happen quick at that point because the exchange has the
rules and the firm NEVER likes things getting to that point.
Rob:)
Visavis wrote:
>
> To all my ever dearest Realtraders,
>
> I got some problem last Tuesday ...
>
> ...Looks like if there is a rule like this but the public is not inform very
> well on this or just even slightly inform then the EXCHANGE would be really
> liable for it!
|